Good investment opportunities exist in the marijuana boom, but caution is urged

Choosing companies with access to the legal medical marijuana space can help investors avoid the risk of changing regulations

Algae Dynamics Corp. is focusing on cannabis oil extraction and medicine delivery systems to provide the medical benefits without having to smoke

ADYNF is partnering with two major universities to research the use of cannabis oil extracts for cancers and novel mental health treatments

Everyone knows there is money to be made in marijuana these days. Americans already spend more on cannabis than ice cream each year, and Canadians are anticipating a combined market that may be larger than the entire domestic alcohol industry by 2020.

How and where to invest, however, is not that simple. An article titled “Investing in International Cannabis Markets” in CannaTech (http://nnw.fm/c4bhR) offers some advice to potential investors.

Savvy investors should keep several things in mind. Regulations are changing, and, while the general trend is toward legalization, it is best to look for companies operating in the legal medical marijuana market to avoid the risk of uncertain federal regulations. These types of investments are even better if the company is positioned to take advantage of recreational legalization, when and if it comes.

Algae Dynamics Corp. (OTCQB: ADYNF) is one such company focusing on the extraction of oils from hemp, cannabis and algae for use in unique health products and pharmaceuticals.

Algae Dynamics’ strategy initiative is to explore compounds extracted from cannabis and to focus on the development and formulation of products that combine the benefits of algae and cannabis oils. The company is targeting the human endocannabinoid system with algae and cannabis oil extracts. Endocannabinoids are found naturally in the human body.

The endocannabinoid system plays an essential mediating role in several physiologic systems, and receptors can be found throughout the central and peripheral nervous systems. Plant-based cannabinoids may offer a more natural way of treating various diseases including multiple sclerosis, arthritis, hypertension, memory loss, pediatric epilepsy and neuropathic pain (http://nnw.fm/vXU7K).

Algae Dynamics plans to leverage its expertise in algae oil extraction to produce cannabis oil extracts for use in non-smoke formulations that offer the health benefits of cannabis without the dangers of smoking. Once extracted, cannabis oil can be vaporized or made into tinctures.

Medically beneficial cannabis oil formulations are being researched by Algae Dynamics by way of partnerships with two major universities. The company has signed a research and product development agreement with the University of Waterloo (http://nnw.fm/NLy8a) for a three-year, $600,000 program to investigate the use of cannabis oil in the treatment of colorectal, pancreas, breast and prostate cancers.

A four-year, C$1,000,000 agreement with the University of Western Ontario (http://nnw.fm/A2wdw) will fund research and product development on the use of cannabis derivatives as novel pharmacotherapies for mental health diseases such as depression, post-traumatic stress disorder, anxiety and schizophrenia.

With its entry into the North American cannabinoid market, which is expected to top $2 billion in consumer sales by 2020, Algae Dynamics is an intriguing investment opportunity for those seeking opportunities in this booming market.

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